The central government on Thursday announced to put on hold the hike in dearness allowance (DA) for the year. Last Month the government had announced an increase of 4 percent in DA to 21 percent from 17 percent.
In a memorandum issued on April 23, 2020, Ministry of Finance said that “in view of the crisis arising out of COVID-19, it has been decided that the additional installment of DA payable to central government employees and Dearness Relief (DR) to central government pensioners, due from 1st January 2020 shall not be paid. The additional installments of DA and DR due from 1st July 2020 and 1st January 2021 shall also not be paid. However DA and DR at current rates will continue to be paid.”
The memorandum further states, “as and when the decision to release the future installment of DA and DR due from 1st July 2021 is taken by the govt, the rates of DA and DR as effective from 1st January 2020, 1st July 2020 and 1st January 2021 will be restored prospectively and will be subsumed in the cumulative revised rate effective from 1st July 2021. No arrears for the period from 1st January 2020 till 30th June 2021 shall be paid.”
